The Post-Credit Era

May 19, 2010 · Dean Rizzi · 3 Comments

We’ve been saying for the past month or so that we’re not particularly worried about the end of the federal homebuyers tax credits. We also weren’t particularly concerned when the Federal Reserve said it would cease purchasing mortgage-backed securities. After all, the only way to discover if a market is truly healthy and viable is to stop subsidizing it.

It’s still early to render a verdict, but so far so good. People recognize that the combination of low rates and lower home prices represent a great opportunity, while many shoppers who failed to find a home to qualify for the tax credit remain undeterred and, just as important, rational – understanding the go-go days of the early 2000s are over. And that’s a good thing. The market of that era was driven more by speculation and less by fundamentals. And though it was highly remunerative for many of us, we see how it turned out.

In housing, slow and steady wins the race, which is why we continue to advise our clients that today’s market offers good fundamentally sound deals that can be financed at good economically advantageous interest rates. Sounds like a win-win deal to us.

www.deanrizzi.com

Appraisal and Loan Contingency

May 17, 2010 · Lee Ginsburg · 2 Comments

Thought this was very well explained for a confusing and very important matter.

“Q: I’m getting an FHA loan to finance my first home. I’m in contract right now. Our appraisal is done and the house appraised for the sale price but the loan process is not yet done, although I was preapproved. My agent says the lender has to review the appraisal.

I’m confused about the difference between the loan contingency and the appraisal contingency. My agent says I should remove the appraisal contingency, but I’m not sure about that.”

Check out Tara-Nicholle Nelsons answer:
http://www.inman.com/buyers-sellers/columnists/tara-nicholle-nelson/plan-a-contingencies-lessons-buyers

http://leesellsmore.com/

San Bruno is a Great Place To Live!

May 14, 2010 · Karin Cunningham · 7 Comments

San Bruno house in the "Belle Air" neighborhood $399,000

San Bruno, Ca is an affordable and charming city on the San Mateo peninsula. Snuggled on a long. wide slope between San Francisco and Burlingame, the weather is usually in the 60′s with a little wind and hardly ever any fog!

We have the best public schools around, as well! As the PTA President of Allen Elementary School, I can give first hand testimonials, as I meet with the other PTA presidents monthly. We are a close knit bunch with all the same goals in mind, to keep our San Bruno children in the best learning environment possible! San Bruno parents really care about their city! Just ask the San Bruno Mother’s Club! Read more

Strategic Defaults On The Rise?

May 13, 2010 · Jean Joh · 3 Comments

Did you catch the latest 60 Minutes episode? It discusses the increase of "strategic foreclosures" where homeowners are walking away from their homes that are "underwater" (worth less than what they owe on it), even though they can afford to pay.

Currently, there are approximately 11 million homeowners in the country who are "underwater", and this number is expected to DOUBLE this year. Some would argue that it's a wise business decision to stop pouring good money after bad, but it's scary to think what would happen if everyone decided to just walk away. Your thoughts?

www.jeanjoh.com

A Quick Snap Shot Of Daly City

May 11, 2010 · Adam Chinn · 2 Comments

I took a quick look at some of the Real Estate Trends in Daly City and found the statistics to be quite encouraging. These statistics are comparing April of 2010 to April of 2009.

Median Price Of Properties Sold: +6%
Properties Under Contract: +69%
Properties For Sale: -16%
Average Days On Market: -7%
Average Monthly Supply Of Inventory: -63%

The numbers are very encouraging, it appears, while prices are slightly up, so is interest in them. Inventory has decreased and so has the amount of time properties are staying on the market. Simple supply and demand, demand is up while supply is down, means the prices properties are selling for have risen.

It is still a great time to buy or sell in the current market, much of it depends on your own personal needs.

Adam Chinn: Visit my website at http://adamchinn.com

Remodeling? Don’t do it to resell!

May 8, 2010 · Lee Ginsburg · 2 Comments

Midrange Remodeling Costs Vs. Payback from Remodeling Magazine
http://www.remodeling.hw.net/2009/costvsvalue/division/pacific/city/san-francisco–ca.aspx

Job Cost	Resale Value	Cost Recouped	Project	Job Cost	Resale Value	Cost Recouped	Change vs.. 2008-09
$13,114	$10,674	81.4%	Siding Replacement (vinyl)	$10,607	$8,476	79.9%
$12,760	$11,328	88.8%	Window Replacement (vinyl)	$10,728	$8,217	76.6%
$13,804	$12,175	88.2%	Window Replacement (wood)	$11,700	$9,044	77.3%
$47,052	$32,057	68.1%	Bathroom Addition	$39,046	$23,233	59.5%
$18,864	$14,517	77.0%	Bathroom Remodel	$16,142	$11,454	71.0%
$16,956	$13,922	82.1%	Deck Addition (composite)	$15,373	$10,904	70.9%
$12,838	$11,744	91.5%	Deck Addition (wood)	$10,634	$8,573	80.6%
$3,835	$2,930	76.4%	Entry Door Replacement (fiberglass)	$3,490	$2,275	65.2%
$1,353	$1,732	128.0%	Entry Door Replacement (steel)	$1,172	$1,470	128.9%
$100,023	$73,551	73.5%	Family Room Addition	$82,756	$54,051	65.3%
$83,463	$45,245	54.2%	Sunroom Addition	$73,167	$37,118	50.7%
$184,839	$143,073	77.4%	Two-Story Addition	$156,309	$107,286	68.6%
$63,803	$53,923	84.5%	Major Kitchen Remodel	$57,215	$41,260	72.1%
$124,579	$90,616	72.7%	Master Suite Addition	$103,696	$67,578	65.2%
$23,210	$21,991	94.8%	Minor Kitchen Remodel	$21,411	$16,773	78.3%
$24,712	$18,829	76.2%	Roofing Replacement	$19,731	$13,133	66.6%

What Now?

May 3, 2010 · Dean Rizzi · 1 Comment

It’s an important question, since it appears the homebuyers tax credits won’t be extended. But it’s a question not to be feared. We think it’s time the housing market stood on its own feet anyway. After all, we can’t gauge the health of a market if it’s still supported with taxpayer stanchions.

But that’s okay; we think the housing and mortgage markets are sufficiently healthy to stand alone. Pessimism is the intellectual position, but the fact is the economy is getting better: Despite worries that American consumers might hunker down for years — spooked by debt, lost savings, and unemployment — austerity has given way to shadows of a new shopping spree: households are replacing cars, upgrading home furnishings, and amassing gadgets. What’s more, wealth – at least wealth measured by equity holdings – is booming.

On the mortgage side, private investors are returning. A California firm recently completed the first private-sector sale of a security backed by mortgages in nearly two years, potentially reopening a market slammed shut by the housing crisis. The $238-million deal was of the highest quality, to be sure, with borrowers making an average down payment of 45 percent and mortgage payments comprising less than 30 percent of income. But as the economy continues to improve and investors become less risk adverse, less restrictive mortgages will be securitized.

Bottom line: we see a growing economy, improving employment, stable home prices, and less restrictive (though higher rate) mortgages in our future. In other words, we see a market for buying and refinancing today.

www.deanrizzi.com